How does the money reach to the pension account?
Employers transfer the 2% withheld from the gross salary of their employees to the Tax and Customs Board and also fill out a related tax declaration.
The sums of the funded payment contributions and the tax declarations must be sent by the employer by the 10th date of the following month when the sums were withheld (pursuant to the Taxation Act).
The Tax and Customs Board checks correctness of the submitted declaration and also adds 4% of your social tax to the sum paid by the employer. The sums are transferred to the Pensionikeskus AS.
The Tax and Customs Board has 15 working days to check the contributions and declarations and to transfer the money to the Pensionikeskus.
Pensionikeskus calculates the units of the pension fund chosen by the owner of pension account, based on the received sum, and transfers the money to the respective pension fund.
Example: The contributions withheld in January must be transferred to the Tax and Customs Board by no later than 10 February. If the employer forwarded the funded pension contributions and declarations correctly, the units will be issued by no later than on 4 March.